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Tax_Dad83
New Member

Received a Tax Bill from state i'm not employed in

  • My wife and I live in Illinois
  • My wife works in Missouri and pays Missouri taxes
  • I work remotely and pay Illinois taxes
  • When we filed Missouri taxes, we correctly provided the income allocations (100% for my wife, 0% for me)

Today, we received a tax bill from Missouri saying we owe them the exact amount that I would have paid if my income came from Missouri.  Obviously, they just didn't read the tax documents I returned which included the income allocation worksheet.

 

What's the best way to handle this?  Send them the tax forms again and highlight the tax allocation form?  Call them and tell them they're ignorant? Send them a bill for wasting my time?

3 Replies
pk
Level 13
Level 13

Received a Tax Bill from state i'm not employed in

@Tax_Dad83 ,  per the IRS view of life  your wages are earned where you actually perform the work. Thus you reside in Missouri and perform work in Missouri and therefore Missouri is the one whom should be taxing you , no matter where the monies are sourced from.  Your employer should have been withholding taxes for the state where you are resident.

 

Generally in such cases you amend your resident state return and  at the same time file a form ( each state has one ) with other state requesting a refund of all withholdings.

 

Does that make sense ?

 

pk

Tax_Dad83
New Member

Received a Tax Bill from state i'm not employed in

Thanks for the response.  I think I didn't explain well enough.

 

I reside in Illinois and my employer is in North Carolina.  My employer withholds Illinois tax from my check.  Everything is fine there.

 

My wife also resides in Illinois but works in Missouri.  Her employer withholds Missouri tax.  Everything is fine there.

 

Missouri sent us a tax bill saying I didn't pay taxes to them for my wages that are not earned in their state.  I have nothing to do with Missouri.  I don't live there, work there, or have an employer located there.  Only my wife.

 

I've filed the same way for years, they obviously screwed up.

Mike9241
Level 15

Received a Tax Bill from state i'm not employed in

we can't see what you filed but you are correct. you should not be paying taxes on your wages in Missouri

so call them to find out what needs to be done to correct their records.

 

As an aside, your wife's wages are taxable in Illinois because that's where she resides but you get a credit for the taxes paid on her wages to Missouri.

 

 

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